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Bache Announces Quarter Loss Despite Profit in Fiscal Year

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September 20, 1974, Page 56 The New York Times Archives

Bache & Co., Inc., the brokerage firm, reported yesterday that it lost $1.02‐million in the fiscal quarter ended July 31 although it showed a profit of $257,000, or 4 cents a share, for the year ended on that date.

Directors also voted to omit the latest quarterly dividend. During the prior quarter Bache paid a dividend of 5 cents share.

John E. Leslie, chairman, attributed the results to the beneficial effects of its acquisition last year of Halsey, Stuart & Co., Inc., and the adverse effects of “a continuing decline in volume... high interest rates and severe inflationary pressures.”

Although Bache was in the red for the latest quarter, the results showed strong improvement ovez a year earlier when the nation's second largest brokerage house reported a loss for the quarter of $4.26‐million and a loss for the 12 months a year ago of $2.45‐million.

Although the results include the operations of Halsey, Stuart starting with. its acquisition in June, 1973, Bache said that if it was assumed that Halsey was acquired at the start of the year, it would have produced a loss of $3.97‐million an revenues of $170.18‐million.

Bache added that its net capital ratio—the amount of indebtedness as related to capital —stood at about 5.3‐to 1, well within the 15 to 1 maximum permitted by the New York Stock Exchange. It listed its total capital as of July 31 at $121.73‐million, of which $24.3million was subordinated debt.

The company has maintained its’ “strong financial position,” Mr. Leslie said, and is continuing a program of “stringent cost control.” He added that it was also accelerating its policy of branch ‐office expansion through acquisition and internal growth.

A version of this archives appears in print on September 20, 1974, on Page 56 of the New York edition with the headline: Bache Announces Quarter Loss Despite Profit in Fiscal Year. Order Reprints|Today's Paper|Subscribe